Taiwan Swap Rates at Record Highs Prompt Reevaluation of Excessive Rate Hike Bets

Reported 12 months ago

Traders in Taiwan are reconsidering their expectations for aggressive policy tightening, as the island's central bank's hawkish actions maintain swap rates near all-time highs. With Taiwan's one and two-year swap rates trading close to peaks and the market pricing in multiple rate hikes, some strategists suggest there may be room for yields to decrease. Recommendations for receiving front-end rates have been made amid softer domestic inflation and potential Federal Reserve rate cuts later in 2024.

Source: YAHOO

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